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‘Balanced Managed’ funds - February 2014



    The changes, which also brought the sectors into line with those defined by the Association of British Insurers, saw the familar Cautious, Balanced and Active Managed sectors replaced by an eventual four ‘Mixed Investment’ sectors that instead are prosiacally named according to the equity quotient in the underlying fund portfolios.

    Advisers therefore now have a choice of investing in:

    • Mixed Investment 0-35% Shares (new for the IMA)

    • Mixed Investment 20-60% Shares (the old ‘Cautious Managed’)

    • Mixed Investment 40-85% Shares (the old ‘Balanced Managed’)

    • Flexible Investment (the old ‘Active Managed’).

    Of these overlapping options, the 40-85% sector that has replaced balanced managed is perhaps the natural home for many md-market clients - and for a good chunk of the risk-rated funds that are becoming equally prevelant in the suitability-obsessed post-RDR world.

    This special report will give an overview of how the changes to these sectors have affected fund selection, how balanced managed funds in particular are adapting to the change in name in terms of asset allocation, and finally how risk-rated and risk-targeted funds fit into this seemingly versatile sector grouping.

    Further reading:

    Guide to the Mixed Investment Sectors

    This special report is sponsored by Axa Framlington. All editorial is independent.

    In this special report


    Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

    1. Which of the four Mixed Investment Sectors did not have an equivalent in the IMA’s previous ‘Managed’ sectors?

    2. Fidelity MoneyBuilder Balanced fund has a maximum drawdown over the past three years of what?

    3. And what was the maximum drawdown of the Blackrock Balanced Managed fund over the same period?

    4. What percentage of the CF Ruffer European fund, the best performing 40-85% Shares fund over 10 years, is held in equities?

    5. What approximate proportion of the MSCI World index is accounted for by UK equities?

    6. How many of the 151 funds in the IMA Mixed Investment 40-85% Shares sector are rated by Distribution Technology?

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